Fitch rates Shangcheng Urban notes BBB

Fitch Ratings said it rated Hangzhou Shangcheng District Urban Construction Investment Group Co. Ltd.'s planned dollar-denominated senior unsecured bonds a BBB rating. Wholly owned special purpose vehicle Zhejiang Boxin (BVI) Ltd., will issue the notes.

HSCI will provide the bonds with a keepwell and liquidity support deed and deed of equity interest purchase undertaking. The deed requires HSCI to maintain the solvency of Zhejiang Boxin. “HSCI also specifies applicable means of transferring funds offshore to service the bond's interest and principal payments in its equity interest purchase undertaking, including the purchase of the equity interest held by its offshore subsidiaries,” Fitch said in a press release.

The proceeds will be used for project construction and replenishing working capital.

The outlook is stable.

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